Pound Stable Ahead of BoE Interest Rate Decision Today
Technical Market Outlook
The GBP/USD pair has rebounded from the 1.2500 support level following the FED's decision to keep interest rates at 5.50%. The pair broke above 1.2601 and 1.2611, establishing these as new support levels. The next target is 1.2656, although market volatility has reduced significantly ahead of today's Bank of England (BoE) interest rate decision. The momentum on the H4 chart is strong and positive, rebounding from oversold conditions. The short-term outlook is bullish, but a break above 1.2656 is needed to continue the upward trend.
Weekly Pivot Points
- WR3: 1.2905
- WR2: 1.2815
- WR1: 1.2682
- Weekly Pivot: 1.2592
- WS1: 1.2459
- WS2: 1.2369
- WS3: 1.2236
Trading Outlook
The weekly chart shows a Bullish Engulfing pattern after breaking past the 1.2340 level. This suggests a strong bullish trend. The market is above the 50-week moving average, aiming for the 100-week moving average at 1.2504. A sustained break below the 1.1802 support level could lead to a significant drop, potentially reaching 1.1494.
GBP/USD H1 Intraday Indicator Signals
- Buy Signals: 14 out of 21 technical indicators
- Neutral Signals: 5 indicators
- Sell Signals: 3 indicators
- Moving Averages: 11 show Buy, 7 show Sell
Sentiment Scoreboard
The overall market sentiment is bullish (57% bulls vs. 43% bears). Last week's sentiment was also bullish (53% bulls vs. 47% bears). In the past three days, sentiment has shifted to more bullish (54% bulls vs. 46% bears).
Useful Links
Important Reminder
The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.
Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.
